Foxtel advances $2B Austar takeover

Company News

Australia's largest pay-tv provider Foxtel’s $2 billion bid for regional pay-TV provider Austar United Communications Limited (ASX:AUN) has advanced. 

Austar said yesterday it has entered into a definitive agreement with its 54 per cent stake holder, Liberty Global, and Foxtel. 

Under the deal Foxtel will acquire 100 per cent of Austar via a series of transactions valued at $1.52 per share.

While the transaction is still dependant on shareholder and regulatory approvals, Foxtel's high-profile shareholders, Telstra Corporation Limited (ASX:TLS), News Corporation (ASX:NWS) and Consolidated Media Holdings Limited (ASX:CMJ) are all backing the deal.

In the 2010 financial year Austar reported a net profit of $99.65 million.